Hawaii’s Sports Betting Bill Moves to Senate Amid Heated Debate

Lawmakers Clash Over the Potential Impact of Gambling in the State

Hawaii’s House of Representatives has approved HB 1308, a bill that would legalize digital sports betting while banning physical sportsbooks. The bill passed on March 4, narrowly beating the state’s March 6 crossover deadline. Despite this milestone, the debate remains intense, with lawmakers divided over its potential effects on local communities, sports integrity, and economic impact.

Concerns Over Gambling’s Impact

HB 1308 advanced with 16 votes against it, and even some supporters expressed reservations. Critics compared the effects of sports betting to substance abuse, with some calling the revenue from gambling “dirty money.” Others warned that legalizing sports betting could lead to increased addiction rates and put extra pressure on public health services.

One major concern is the possibility of money leaving Hawaii and benefiting out-of-state operators instead of local businesses. Some lawmakers argue that gambling revenue should stay within the state rather than flow to offshore or national betting companies.

Another key argument against the bill centers on sports integrity. Opponents worry that allowing betting on games could corrupt competitions and damage the spirit of fair play in professional and college sports. They argue that sports should remain free from the influence of financial speculation.

A Renewed Push for Sports Betting in Hawaii

HB 1308 is the first sports betting bill to pass the House, but efforts to legalize sports wagering in Hawaii have been ongoing for years. Representative Daniel Holt, the bill’s sponsor, has introduced similar measures before, but they failed to gain traction. This time, he believes the proposal strikes the right balance between accessibility and control.

The bill would allow for four digital sports betting platforms but prohibits physical sportsbooks. Supporters argue that this limited approach addresses concerns about gambling addiction while providing residents with a regulated alternative to offshore betting sites.

Taxation and Licensing Debates

A major point of contention in the House was the tax rate and licensing fees. The original version of the bill proposed a 10% tax on betting revenue and a $250,000 application fee for operators. However, the House Finance Committee removed these provisions, fearing they could derail the bill’s progress.

Representative Sue L. Keohokapu-Lee Loy opposed this decision, arguing that low licensing fees fail to reflect the true value of the industry. “I would love to see that license fee go up exponentially,” she stated, emphasizing the need for stronger financial regulations.

Hawaii Among the Last States Without Sports Betting

Since the 2018 repeal of PASPA, 39 states have legalized sports betting. Hawaii remains one of just 11 states without legalized wagering. It is also one of at least eight states considering sports betting bills during the 2025 legislative session.

The national landscape remains fluid. While some states, such as Mississippi and Minnesota, have faced setbacks in their sports betting efforts, Georgia continues to push forward with legislation. Hawaii now stands at a pivotal moment, with lawmakers debating whether to follow other states in embracing sports betting or continue its long-standing gambling restrictions.

What’s Next for Hawaii’s Sports Betting Bill?

HB 1308 now moves to the Hawaii Senate, where it faces another round of scrutiny. The Senate previously deferred SB 1569, a similar bill, raising doubts about whether HB 1308 will pass. The legislature has until May 2 to reach a decision.

Advocates hope the bill will move forward, but concerns over addiction, revenue allocation, and sports integrity remain significant obstacles. The Senate may reinstate the tax and licensing fees removed by the House or introduce new regulatory measures.

As neighboring states expand sports betting, Hawaii must decide whether to join the growing industry or maintain its stance against gambling. The next two months will be critical in shaping the state’s gaming future.

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Hawaii’s Sports Betting Bill Advances to Senate – Will It Survive?

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